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Integrated Response Management and Demand Generation

A New Path To Profit For Non-core Products

AT A GLANCE

COMPANY TYPE
Packaged Terminal Air-conditioning

TARGET AUDIENCE
Hospitality Property Managers

SIZE OF AUDIENCE
60,000 Contacts

RESULTS

2.6X
More than doubled marketshare from 9% to 24% in only four years

$42MM
Annual incremental sales lift

75,000
Units sold annually

15%
Of total market sales converted to factory direct

OVERVIEW

Every major manufacturer has core products that receive the most attention and share of budget. A widely known $6 billion dollar national air-conditioning manufacturer also possessed non-core products that accounted for less than $50 million—less than 1% of total revenue. Because of this, the division was largely ignored within the existing sales process, despite its great sales potential.

CHALLENGE

The existing sales channel had been working well for these non-core products during periods of strong economic growth. However, when the market changed from construction to replacement, dealers had no interest in selling one off replacements that generated little sales revenue. The challenge was to develop a factory direct sales and logistics model to reverse a sharp decline in sales (mid-twenties to less than 10% in just four years).

SOLUTION

The solution was to re-engineer the sales and marketing process to match the market dynamics that this division had to compete in. A direct marketing approach that identified the universe of buyers, the life cycle of the product, when buyers would be ready to purchase, and how to target these buyers most effectively was created.

PROCESS

The first step was to produce a pilot program to identify how the process would work. In the first 90 days, we were able to reaffirm the sales process, identify the size of the market, number of decision makers, number of companies who were willing to buy, how many units these companies had, and which of these units were likely to be candidates for replacement. In just three months, we established the template to move forward.

ChannelReach

After reaching this understanding, a clear strategy was developed and an integrated communications plan designed to message the right prospects at the right time to capture their business. Ultimately, a balanced approach to sales, marketing, and database mining was developed and implemented.

RESULTS

The client was able to grow sales from the pilot phase to nearly 75,000 units per year over a period of four years. Despite significant increases in market share and sales from $25 million to over $42 million, distribution wasn't cannibalized; the distributor volume stayed constant, providing benefits on both sides of the sales ecosystem.

Are you a manufacturer selling through multi-step distribution with a need to reach downstream channel partners and/or customers?

Contact us today to learn how ChannelReach can help you achieve the outcomes you're looking for.

mmcbuildingproducts.com | bpinfo@mmcglobal.com | 800-720-1656

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